VICTOR GICHURU: Kenya-Uganda SGR line to boost regional trade

Uganda said it will start construction in August.

In Summary

• Viability of Kenya’s $2.39 billion (Sh317.5bn) project was dependent on the Ugandan section.

• It is envisaged that the regional rail and road transport infrastructure will stir socio-economic developments in the East African Region.

Victor Gichuru, communications specialist on SGR operations.
Victor Gichuru, communications specialist on SGR operations.
Image: HANDOUT

The recent announcement by Uganda that it would start the construction of the Standard Gauge Railway in August is welcome news as it revives hopes for the extension of Kenya’s $2.39 billion (Sh317.5bn) project whose viability was dependent on the Ugandan section.

Uganda’s announcement to commence construction of its section of the Malaba-Kampala railway under the Northern Corridor Project that required all the member states to put up a modern railway line in their respective States, couldn’t have come at a better time. It reaffirms the commitment made in 2014, when leaders from Uganda, Kenya, Tanzania, South Sudan and Rwanda broke the ground for the construction of SGR to link the member states with the view of boosting trade in the region.

According to the World Bank, these countries have a combined market of over 300 million people, and it is envisaged that the regional rail and road transport infrastructure will stir socio-economic developments in the East African Region. For starters, the SGR has emerged as a transformative infrastructure project in East Africa, revolutionising transportation and trade dynamics. The potential benefits of extending the SGR line from Kenya to Uganda are vast, offering significant economic gains for both nations.

Enhancing trade and regional integration

Connecting Kenya and Uganda through the SGR line would provide a seamless and efficient mode of transportation for goods, promoting increased trade and regional integration. The SGR's superior capacity and faster transit times would reduce logistical bottlenecks and lower transport costs, encouraging cross-border commerce. It would facilitate the movement of goods, enhancing access to markets and expanding business opportunities for industries in both countries.

Notably, Uganda is banking on the railway to boost speed and lower the cost of transporting exports such as coffee and tobacco. It currently relies on costly and slow road links and a century-old narrow meter gauge rail line built by former colonial power Britain.

Boosting economic growth

The SGR connection between Kenya and Uganda would act as a catalyst for economic growth in both countries. Improved transport infrastructure stimulates investment, attracts foreign direct investment, and enhances competitiveness.

It would unlock the potential of various sectors, such as agriculture, manufacturing, and tourism, creating employment opportunities and generating revenue. The SGR connection would drive economic diversification and contribute to the overall prosperity of Kenya and Uganda.

Strengthening East African integration

The SGR connection represents a significant stride towards strengthening East African integration. It aligns with the broader vision of the East African Community (EAC) to promote regional cooperation, connectivity and economic development. The integration of Kenya and Uganda through the SGR line would facilitate smoother movement of people, goods and services and foster closer ties and enhance collaboration between the two nations. This integration would create a foundation for deeper regional integration within the EAC, fostering a unified East African market.

Facilitating cross-border infrastructure development

The SGR connection between Kenya and Uganda would serve as a crucial component of cross-border infrastructure development. It opens avenues for further connectivity and regional linkages, extending beyond the immediate borders of the two nations. The SGR line could potentially be expanded to connect with other countries in the region, such as Rwanda, South Sudan, and the Democratic Republic of Congo. This interconnected network would amplify trade, investment, and cooperation, creating a web of economic prosperity across East Africa.

Promoting sustainable development and environmental conservation

The SGR connection aligns with the principles of sustainable development and environmental conservation. By offering an efficient mode of transport, it would reduce reliance on road transport, which is more environmentally taxing. The shift towards rail transport would contribute to the reduction of carbon emissions, alleviating congestion on the roads and minimising the ecological impact. The SGR connection provides an opportunity to promote sustainable development practices and ensures a greener future for Kenya, Uganda and the region as a whole.

Creating a lasting impact

The connection of Kenya and Uganda through the SGR line holds immense potential for economic growth, regional integration and sustainable development. The project would enhance trade, boost economic activity and strengthen the bond between the two nations.

Furthermore, it would create a foundation for broader regional connectivity, fostering a unified East African market. By recognising and harnessing these opportunities, Kenya and Uganda can unlock their full potential, driving prosperity and progress for their people and the region as a whole. The SGR connection represents a transformative step towards a more interconnected, prosperous, and sustainable future.

The author is a communications specialist on SGR operations

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